A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Balance TransferMoving debt from one credit card to another, often to take advantage of a lower promotional interest rate.
- Purchase APRThe interest rate applied to everyday purchases on a credit card when you carry a balance past the grace period.
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
- APR (Annual Percentage Rate)The yearly cost of borrowing money on a loan or credit card, stated as a percentage that includes interest and certain fees.
- Deferred InterestA promotional offer where interest is waived only if you pay the full balance by the deadline, then charged retroactively if you don't.
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Plain-English education — not personalized legal, tax, or investment advice.